ICICI Bank’s recently announced that its net profit reduced by 4.99% to a sum of Rs.969.06 crore in the fourth quarter of FY19 from Rs.1,020 crore in the year-ago period. The primary reason for this drop was due to the lender’s one-time gain of around Rs.3,320 crore in the fourth quarter of FY18.
The bank’s consolidated net profit during Q4FY19 stood at Rs.1,170 crore, as against a consolidated net profit of Rs.1,141 crore in the corresponding period of the last financial year. However, ICICI Bank’s standalone net profit during FY18-19 reduced by 50% to a sum of Rs.3,363.30 crore from Rs.6,777.42 crore in the year-ago period.
The private sector lender’s bad loan provision increased to Rs.5,451.41 crore in the fourth quarter of FY19 from Rs.4,244.15 crore in the third quarter of FY19. That said, on a yearly basis, the lender’s bad loan provision reduced by 17.7%.
ICICI Bank’s gross non-performing assets (NPAs) reduced to Rs.46,291.63 crore, while the net non-performing assets stood at Rs.13,577.43 crore.
The lender’s total income increased by 4.86% to touch a sum of Rs.20,913.82 crore in Q4FY19 from Rs.19,942.97 crore during the corresponding period during FY17-18. The net interest income of the bank increased by 26.54% to touch Rs.7,620 crore from Rs.6,021.67 crore.
The net interest margin during the fourth quarter of the FY19 was 3.72%. Other incomes of the lender reduced to Rs.3,621.02 crore for the period under review from a sum of Rs.5,678.61 crore in the year-ago period.
ICICI Bank’s overall expenditure increased by 18% to Rs.14,680.43 crore in Q4FY19, as against a total expenditure of Rs.12,428.99 crore in the year-ago period.
The board of directors of ICICI Bank has recommended that a dividend of Re.1 per share for FY18-19 should be paid out. The board has also approved Mr. Batra’s appointment as the executive director of the bank, subject to receiving the required regulatory approval for a period of 5 years. Mr. Batra currently serves as the President, Corporate Centre, ICICI Bank.
The private-sector bank’s board also approved the plan to raise funds of up to a total of Rs.25,000 crore via debt securities from domestic markets and up to a total of $3 billion from international markets.
Source: The Hindu Business Line, The Times of India